a former Wells Fargo broker and investment advisor who was sent to prison for fraud has been permanently barred by the Securities and Exchange Commission, Financial Advisor reports.
The action was taken against 43-year-old Kenneth A. Welsh, of River Edge, New Jersey, who was charged in U.S. District Court for the District of New Jersey in 2021 with four counts of wire fraud and one count of investment advisor fraud. The SEC said that Welsh stole at least $2.86 million from advisory clients and brokerage customers, some of whom were seniors. He used the funds to buy gold coins and other precious metals as well as purchasing luxury goods. He also allegedly transferred some of the money into family credit card accounts to pay off balances.
According to the complaint, Welsh made at least 137 fraudulent transactions from 2016 to 2021. He intentionally circumvented Wells Fargo’s policies and procedures to transfer money from their accounts, including by manually altering checks, the complaint said.
Welsh pleaded guilty in November 2024 in Trenton federal court to the indictment and was sentenced last July to 44 months in prison. Last September, the SEC settled a civil judgment against Welsh.
The SEC issued an order last month barring Welsh from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. The SEC determined that removing him from the industry is in the public interest and necessary to protect investors from future harm.
Welsh’s BrokerCheck record showed that seven customer complaints against him relating to the theft allegations have been settled.
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (844) 316 8277 or through our online contact form for a no-cost evaluation of your matter.
